Context-Dependent Product Evaluations: An Empirical Analysis of Internet Book Reviews

Abstract

Using book review data on Amazon.com, the authors extend current research into online consumer reviews by empirically investigating the context dependence effect in the review writing process. They find that when product quality remains constant, later reviews tend to differ from previously posted ones, and the difference is moderated by the popularity of the product, the variance of previous reviews, whether later reviews explicitly refer to previous reviews, and the age of the product and the reviews. This phenomenon can be explained by both consumer expectation and self-selection effects in review writing. The implications of this research can help practitioners understand the reviewing process and provide some guidelines for improving the objectivity of online product reviews.

Keywords: online reviews, context dependence, self-selection effect, expectation effect, ordered logistic model

JEL Classification: C23, D60, D80, M31