Abstract

http://ssrn.com/abstract=918083
 
 

References (33)



 
 

Citations (8)



 


 



All Reviews are Not Created Equal: The Disaggregate Impact of Reviews and Reviewers at Amazon.Com


Pei-Yu Chen


Arizona State University (ASU) - Department of Information Systems

Samita Dhanasobhon


Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Michael D. Smith


Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

May 2008


Abstract:     
Online product review networks help to transmit information that customers can use to evaluate product quality. The prior literature has found that, in the aggregate, better product reviews lead to higher sales. However, product review networks increasingly include an explicit social component that allows consumers to evaluate individual reviews based on the status of the reviewer and on the "helpfulness" of the review to the community.

In this research, we extend this literature by analyzing the impact of reviews at a disaggregate level. We find that reviews that the community finds helpful have a stronger influence on consumers' purchase decisions than other reviews do. Moreover, these reviews have a stronger impact on less popular books than on more popular books, where consumers may be able to use other outside information sources to form an opinion of the product.

Overall, our results suggest that the micro-level dynamics of community interactions are valuable in signaling quality over-and-above aggregate-level scores. One implication of this result is that the micro-level dynamics of reputation communities make it harder for self-interested parties to manipulate reviews versus an environment where consumers only have aggregate quality measures.

Number of Pages in PDF File: 31

Keywords: electronic commerce, recommendation system, digital word-of-mouth, econometrics

JEL Classification: L86, M3, O30

working papers series


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Date posted: July 20, 2006 ; Last revised: August 3, 2014

Suggested Citation

Chen, Pei-Yu and Dhanasobhon, Samita and Smith, Michael D., All Reviews are Not Created Equal: The Disaggregate Impact of Reviews and Reviewers at Amazon.Com (May 2008). Available at SSRN: http://ssrn.com/abstract=918083 or http://dx.doi.org/10.2139/ssrn.918083

Contact Information

Pei-Yu Chen
Arizona State University (ASU) - Department of Information Systems ( email )
Tempe, AZ
United States
Samita Dhanasobhon
Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )
Pittsburgh, PA 15213-3890
United States
Michael D. Smith (Contact Author)
Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )
Pittsburgh, PA 15213-3890
United States
HOME PAGE: http://www.heinz.cmu.edu/~mds
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