Exploring the influence of online reviews and motivating factors on sales: A meta-analytic study and the moderating role of product category

Online reviews, which significantly influence product sales, have been a central research topic in the field of marketing. Meanwhile, some motivating factors related to online retailers have been linked to product sales. While several articles have examined the impact between online reviews and motivating factors on product sales, many of the conclusions drawn are contradictory. From 28 studies focusing on online reviews and sales, this study performs a meta-analysis to analyze the true impacts of six review-related factors (i.e., the number of reviews, star ratings, standard deviation of ratings, helpfulness, review length and sentiment), and two motivating factors (i.e., price discounts and special shipping) on product sales. Meanwhile, this paper also studies how one product-related factor (i.e., product age) and one reviewer-related factor (i.e., reviewer's reputation) influence the relationship between online reviews and product sales. In addition, to study the moderating effect of product category, we divide the selected literature into two subgroups which are search and experience products. The results indicate that only review length and special shipping have no significant impact on product sales, while product category has a valid and specific moderating effect on the relationship between these determinants and sales. The presented conclusions will have important implications for academic research and for future industry practice.     

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.     

Strategic Trade Policy and Network Compatibility

We consider strategic trade policy for information and communication technology (ICT) product markets with international rivalry. Usually, ICT products exhibit network externalities and product compatibility (i.e., network compatibility). We demonstrate that the optimal strategic trade policy depends on the degree of network compatibility of ICT products. Furthermore, using an endogenous decision game for strategic variables (i.e., quantity and price), we consider the relationship between the optimal strategic trade policies and the endogenous mode of competition.     

When does electronic word-of-mouth matter? A study of consumer product reviews

Online consumer product reviews, a form of electronic word-of-mouth (eWOM), have attracted increased attention from researchers. This paper examines the persuasiveness of eWOM. Drawing on regulatory focus theory, the authors propose that the consumption goals that consumers associate with the reviewed product moderate the effect of review valence on persuasiveness. Data from lab experiments and actual online retailers suggest that consumers who evaluate products associated with promotion consumption goals perceive positive reviews to be more persuasive than negative ones (i.e., a positivity bias). Conversely, consumers who evaluate products associated with prevention consumption goals perceive negative reviews to be more persuasive than positive ones (i.e., a negativity bias).     

Feeling lucky: How framing the target product as a free gift enhances purchase intention

The present research investigates how consumers respond to alternate premium promotion framings that have equal value (e.g., “buy a flash drive and get a free earphone” vs. “buy an earphone and get a free flash drive”). We show that the counterintuitive framing of the target (vs. non-target) product as a free gift makes consumers feel lucky, which in turn increases their purchase intention for the product bundle. We further show the effects of two moderators—salience of targeting and promotion magnitude, such that the main effect is mitigated when the marketer’s targeting efforts are salient for consumers and when the target product is price discounted but not free. Four studies (i.e., a lab study, two online experiments, and a field experiment involving actual purchases of the promoted products) for a range of products and services across two countries provide converging evidence supporting the hypotheses. The findings contribute to the literatures on bundle framing effects, pricing, and luck research in marketing, and have practical implications on designing more effective promotions for both online and brick-and-mortar retailers.     

Searching online and buying offline: Understanding the role of channel-, consumer-, and product-related factors in determining webrooming intention

In recent times, the increasing accessibility of mobile technology has led to changes in consumers’ purchasing behavior. Despite the gloom and doom hearsay about how electronic commerce is threatening the existence of brick-and-mortar stores, by some indications, however, webrooming (i.e., the practice of researching items online, and then buying them offline) may be an even more common practice among shoppers. Against this background, this study proposes and empirically validates a comprehensive research model which incorporates consumer traits (i.e., need for touch, need for interaction, and price-comparison orientation), channel-related factors (i.e., online search convenience, perceived usefulness of online reviews, perceived helpfulness of in-store salespeople, and perceived risk of buying online), and smart shopping perception as antecedents of webrooming intention. Moreover, this study examines the moderating role of product category in predicting webrooming intention. A questionnaire-based survey was conducted. A total of 280 useable responses was collected and data was analyzed using partial least square structural equation modeling. The findings revealed significant direct and/or indirect effects (through smart shopping perception) of consumer traits and channel-related factors on webrooming intention. In addition, product category was found to moderate the relationship between price-comparison orientation, online search convenience, perceived risk, and webrooming intention. Theoretical and practical implications are discussed.     

How product representation shapes virtual experiences and re-patronage intentions: the role of mental imagery processing and experiential value

Despite the lack of physical contact, innovative technologies in online stores are able to engender compelling virtual product experiences. The primary objective of this study is to clarify the mechanisms through which these virtual product experiences occur. The study proposes and tests a model in which mental imagery processing and consumers' perceptions of experiential value function as potential mechanisms through which virtual experiences in online stores are established, thereby determining re-patronage intention. The model was tested in an experimental study investigating two versions of a fast fashion online store that varied in terms of product representations: dynamic (i.e., a mix-and-match feature allowing the creation of visual images of apparel combinations) and static (i.e., rigid pictures). A sample of 660 valid cases involving individuals of Generation Y (born in 1977–1994) was obtained. The structural equation modeling technique was used to analyze the proposed research model. The results indicate that the dynamic mix-and-match technology arouses more mental images of physical product interaction than do static pictures. Moreover, mental imagery processing can be considered an important underlying source of online experiential value, which consumers subsequently exploit with repeated visits to the online store. By introducing psychological constructs such as mental imagery and perceived value, this study augments prior research on online product experiences by proposing and validating the underlying mechanisms through which the way of representing products affect consumer responses. Finally, both theoretical and practical contributions of the findings are discussed, as well as directions for further research.     

When consumers can return digital products: Influence of firm- and consumer-induced communication on the returns and profitability of news articles

The news industry is being massively disrupted by the digital distribution of news. Consequently, publishers have revised their business models and integrated pay-per-article options. To reduce pre-purchase uncertainty, consumers can use information from firm-induced (e.g., newsletters), or consumer-induced communication (e.g., likes). These communication activities avoid purchases with poor fit but also increase customer expectations. Consequently, their effect on sales, returns, and profitability is unclear. For digital products, these effects are even less clear because product quality is difficult to evaluate pre-purchase, and products can be returned at almost no cost, even after consumption. In this study, we investigate the effects of firm- and consumer-induced communication on digital returns in the context of news articles on a major online platform (Blendle). We rely on a multi-equation model to quantify the effect of firm- and consumer-induced communication activities (i.e., newsletter promotions sent out by the platform and consumer likes from readers) on sales and returns and calculate their profitability impact. Our results show that newsletters decrease returns but do not significantly affect sales. In contrast, consumer likes have a twofold effect by increasing sales and decreasing returns. A simulation shows that both newsletters and likes increase profitability and that likes have a higher potential. Our results offer much needed guidance for online aggregators of digital products (e.g., audiobooks, e-books or news articles), as well as for online publishers based on pay-per-unit business models.     

When Do Online Consumers Shop in an Offline Store: The Moderating Effects of Product Characteristics

This study serves as an initial attempt to demonstrate empirically how online consumers react to the offline channel extensions (i.e., opening physical stores) of e-tailers. Specifically, we examine how the attributes of offline channels influence consumer intentions to switch to offline channels and how they also lead to incremental demands on online channels. We investigate how these effects vary across highly complex utilitarian and hedonic products. The results of the study indicate that although store openings encourage online consumers to shop there when purchasing highly complex utilitarian products, the addition of offline stores results counterintuitively in incremental patronage of the online channels when consumers shop for highly complex hedonic products. This study validates the guiding role of product characteristics in designing offline channels for e-tailers and suggests that incorporating product type and complexity into the design is likely to contribute to the development of stores tailored to specific consumer segments.     

Website evaluation criteria among US college student consumers with different shopping orientations and Internet channel usage

The purpose of this study was to compare the website evaluation criteria among college student consumers in the US with different shopping orientations and Internet channel usage (i.e. online information searchers, online purchasers). The sample for this research was 414 college students, non‐married and aged 18–22 who have experience in visiting websites selling apparel products. Five apparel website evaluation criteria were identified by factor analysis (i.e. product information, customer service, privacy/security, navigation, auditory experience/comparison shopping). Based on shopping orientation factors, cluster analysis revealed three shopping orientation clusters (i.e. Hesitant In‐home Shoppers, Practical Clothing Shoppers, Involved Clothing Shoppers). Factorial manova showed that website evaluation criteria were significantly different among college student consumers with different shopping orientations and between online information searchers and online purchasers. Implications and limitations of the study are discussed.     

Is Online Word of Mouth Higher for New Models or Redesigns? An Investigation of the Automobile Industry

Changing consumer preferences, entry of new competitors with better products, and product improvements by existing competitors make new products a necessary investment for most companies. In addition to the investments in R&D and production of new products, firms also need to invest in advertising to promote them. The growing use of social media by consumers therefore makes online consumer conversations an attractive additional format for firms to promote products at a lower cost. This is particularly so in the automobile industry where advertising costs are very high. Whether consumers discuss a newly introduced product, and help to promote it, however, may depend on how new the product is. This is the question that we investigate in the context of the automobile category. Specifically, we examine whether online consumer conversations are more likely for new models (e.g., Chevy Volt introduced in 2010) or redesigns of existing models (e.g., the redesign of Chevy Impala in 2010). We use data from two online sites where consumers discuss automobiles – consumerreports.org and edmunds.com – for our analysis. Our empirical investigation also accounts for the effects of sales on word of mouth and the simultaneity between sales and word of mouth. Additionally, we also consider the effect of satisfaction on word of mouth and the endogeneity of satisfaction. Our results across two datasets suggest that redesigns stimulate significantly more conversations than new models. Managerial and research implications of the findings are discussed.     

Thanks COVID-19, I'll reconsider my purchase: Can fear appeal reduce online shopping cart abandonment?

Despite the widespread prevalence of online shopping cart abandonment (OSCA) and allusions to this behavior in popular press, scholars have yet to examine the key determinants of OSCA. This study used the stimulus-organism-response (S–O-R) model to explore the factors influencing consumers' OSCA and decision to buy from a land-based retailer. Two studies were carried out to test the proposed hypotheses among Mainland China's Generation Y consumers. Data was collected based on two product categories (i.e., apparel and electrical appliances) at two different time scenarios (i.e., pre- and post-pandemic). The findings reveal that hesitation at checkout increases OSCA, while consumers' decision to buy from a land-based retailer is influenced by their emotional ambivalence and OSCA. Furthermore, fear appeals appear to weaken the relationship between OSCA and the decision to buy from a land-based retailer. This study has implications for researchers and practitioners who seek to effectively reduce the rate of OSCA.     

What makes people choose within-domain versus across-domain compensation following a self-threat? The role of self-verification motives

ABSTRACT

Consumers who experience a psychological threat may compensate by acquiring a product that directly boosts the threatened aspect of their self-concept (i.e., within-domain compensation), or they may compensate by acquiring a product that boosts an unrelated aspect of their self-concept (i.e., across-domain compensation). The current research investigates how self-verification motives influence consumers’ preference between these two compensation strategies. In two studies, participants with a self-verification motive displayed an increased preference for within- (vs. across-) domain compensatory products following a self-threat. Underlying this effect, those with a self-verification motive reported a greater desire for products that re-confirmed the threatened domain of their self-concept.     

It is all about our impulsiveness – How consumer impulsiveness modulates neural evaluation of hedonic and utilitarian banners

The increasing number of active Internet users has encouraged companies to compete to design the most efficient online ads for their target audience. While some companies build their ads based on the functional and instrumental benefits of their advertised products (i.e., utilitarian banners), others emphasize the experiential, personal, and emotional advantages of purchasing their product (i.e., hedonic banners). This is the first study to use neuroimaging to address the debate in the literature regarding the processing and effectiveness of these types of messages. By means of functional Magnetic Resonance Imaging (fMRI), we explored the neural mechanisms by which an individual consumer trait, namely consumer impulsiveness, influences the evaluation of hedonic and utilitarian banners. The neural results revealed that more impulsive consumers exhibit a higher level of activation in brain regions linked to reward, trust, emotion, as well as a reduction of activity in self-control brain networks, when viewing hedonic banners. Consumers reporting lower levels of impulsiveness (i.e., prudent users), in turn, exhibited stronger activation in brain regions associated with self-control and cognition when evaluating utilitarian banners. Consequently, on the basis of an objective and neuropsychological approach, these results can be used to inform companies about the type of online advertising they should use based on the characteristics of their target audience.     

Beyond presence: Creating attractive online retailing stores through the cool AR technology

Augmented reality (AR) is increasingly coming into the spotlight for its potential to improve the consumer experience through the creation of presence. This research aims to explore the theoretical mechanisms through which AR-based product presentation influences online store attractiveness and whether the effects differ in the purchasing contexts of hedonic and utilitarian product types. From the perspective of consumers' bidimensional experience, we find that AR increases online store attractiveness by creating perceived coolness (intrinsic attribute) and spatial presence experience (extrinsic attribute), which would further have a positive impact on consumers' purchase intention. The mediating mechanisms are different in purchasing contexts of various product types: for hedonic products, perceived coolness and spatial presence are parallel mediating factors leading to the improvement of online store attractiveness; while for utilitarian products, only the mediation effect of spatial presence presents. Our findings enrich the literature on AR marketing by proposing an insightful mediating force (i.e., perceived coolness) to complement the effect of presence, and explore the different purchasing contexts. We also provide managerial guidance for e-retailers to differentiate AR interface design for diverse product types to apply AR technology effectively.     

The impact of customer-generated evaluation information on sales in online platform-based markets

As the online platform-based market expands, research into the impact of consumer-accessible information in this market on performance has received significant attention in recent years. In this study, we focus on customer-generated evaluation information (CGEI). The purpose of this study is to demonstrate the effect of CGEI—both quantitative (i.e., star rating, star rating volume) and qualitative (i.e., customer review content) aspects—on actual sales in an online platform-based market. We analyze the regression of quantitative GCEI on sales and for qualitative GCEI we apply the Latent Dirichlet Allocation (LDA) topic modeling. We discover that star ratings do not always lead to increased sales, implying that star ratings and sales have an inverted U-shaped relationship. Furthermore, the results demonstrate that star rating volume has a positive effect on sales. We reveal that the review contents of product quality and added value have a positive effect on sales, whereas those of seller service have no effect on sales. This study provides some insight into how customer-generated information can increase actual sales in online platform-based markets.     

How Product–Environment Brightness Contrast and Product Disarray Impact Consumer Choice in Retail Environments

A conceptual model is developed to predict how consumers respond to in-store displays as a function of the extent to which a product’s brightness level (i.e., its perceived light-emitting quality) contrasts with that of its background environment and the product’s level of disarray. We show that products whose brightness levels contrast more with those of the retail environment are more preferred because they visually “pop out” (e.g., a dark product in a brightly lit store environment). However, this preference reverses when the products that pop out appear in disarray (i.e., are perceived to have been previously touched by other shoppers). Because most stores are bright environments, darker (vs. lighter) products in disarray are more likely to be perceived as contaminated and less pleasant, leading to avoidance behaviors, evident in reduced sales and preference. Theoretical and managerial implications are discussed.     

Extrinsic and intrinsic motivators for usage continuance of hedonic mobile apps

This study explores intrinsic (i.e., perceived enjoyment, perceived involvement) and extrinsic motivator (i.e., perceived usefulness, convenience, perceived ease of use) for usage continuance of hedonic mobile applications (apps). Satisfaction serves as an important link between motivators and continued willingness to use, therefore its effect was analysed through mediation. Data was collected through an online survey and a total of 720 valid responses were received. Results showed that intrinsic motivators had a significant effect on continued willingness to use (CWU) and extrinsic motivators on satisfaction for hedonic mobile apps. Extrinsic motivators strongly mediate the relationship between intrinsic motivators and satisfaction. Factors related to viewing patterns (i.e., viewing frequency, viewing time) and demographic factors (i.e., age, education) moderated relationships in the model. This study provides significant theoretical and practical implications for researchers in the domain of mobile applications. The study introduces convenience as a determinant of satisfaction and validates the existence of duality for dimensions of motivators.     

Online shoppers' response to price comparison sites

Customers' perceptions of price differ in the online environment due to the presence of price comparison sites. The purpose of this study is to examine how price comparison sites affect price and value perceptions of online shoppers across different product types and price consciousness levels of online shoppers. The results of the study indicate that the price information provided by an online price comparison site influences online shoppers' perceptions of internal reference prices. However, the influence of a price comparison site on value perception differs according to product type. As evidenced by the significant interaction effect between product type and price comparison site information, the presence of price comparison sites increases both transaction and acquisition value perceptions for the non-look-and-feel product category (e.g., notebook computers), but not for the look-and-feel product category (e.g., jeans). Contrary to the expectation, online shoppers' price consciousness influences their price and value perceptions independently of price comparison site information.