Matching Consumer Preferences with Product Attributes: The Value of Multi-dimensional Online Word of Mouth Systems
نویسندگان
چکیده
Online reviews and ratings help consumers learn more about products. However, mixed findings have been found regarding the effects of ratings on consumer decision-making. Such lack of effect may be due to the limitation of single-dimensional ratings in transferring quality information. Since quality often comprises of multiple dimensions, some scholars have urged for multidimensional rating systems as a way to better convey quality information. This paper directly addresses whether, and to what extent, multi-dimensional rating systems enhances information transfer efficiency, and empirically quantify the value of multi-dimensional online rating system (versus single-dimensional online rating system) from an information transfer perspective. Our key identification strategy hinges on a natural experiment that took place on www.TripAdvisor.com (TripAdvsior) when it changed its rating system from single dimension to multi-dimension in 2009. To control for any unobserved quality change over time at the restaurant level, we also obtained ratings data on the same set of restaurants from Yelp. This allows us to identify the causal effect with a difference-in-difference approach. Our results show that ratings tend to be more dispersed and are trending down in single-dimensional rating system compared to multi-dimensional ratings, providing support that consumers form more accurate expectation from Ying Liu Arizona State University Tempe, AZ 85281 [email protected] Pei-yu Chen Arizona State University Tempe, AZ 85281 [email protected] Yili Hong Arizona State University Tempe, AZ 85281 [email protected]
منابع مشابه
Measure and Mitigate the Dimensional Bias in Online Reviews and Ratings
Online word-of-mouth in the form of online reviews and ratings is an increasingly important resource for consumers to acquire product information for their purchase decision. However, dimensional review bias, originated from consumer heterogeneity and their multidimensional product preferences and experiences, have been shown to undermine the information transfer among consumers. Through a nove...
متن کاملWhy Consumers Talk: An Investigation of the Extrinsic Motivators of Electronic Word of Mouth
We investigate the relative effects of intrinsic and extrinsic motivators on online consumer word of mouth. Specifically, we examine how the influence of product satisfaction – an intrinsic motivator – compares to three extrinsic motivators, i.e., product life cycle stage, product attributes and expert opinions, in stimulating electronic word of mouth. We also examine the roles of different typ...
متن کاملThe Dark Side of Reviews: The Swaying Effects of Online Product Reviews on Attribute Preference Construction
Based on the “wisdom of the crowd” effect, consumer-generated online reviews are supposed to help consumers make more accurate product evaluations. However, the large amount of information in the reviews, coupled with conflicting opinions, can make it difficult for consumers to identify and consider those attributes relevant to their decision. Thus, while online product reviews are generally be...
متن کاملA Grouping Hotel Recommender System Based on Deep Learning and Sentiment Analysis
Recommender systems are important tools for users to identify their preferred items and for businesses to improve their products and services. In recent years, the use of online services for selection and reservation of hotels have witnessed a booming growth. Customer’ reviews have replaced the word of mouth marketing, but searching hotels based on user priorities is more time-consuming. This s...
متن کاملE-Commerce Profitability & Consumer Purchase Behavior
Consumers often evaluate alternatives differently based on whether they are performing the search online, or offline physically in a store. Information is available more systematically online for consumers to evaluate thus enabling them to rate each and every feature of the product. However, certain attributes (such as size) are difficult to judge without the physical inspection of the product ...
متن کامل