Automated Marketing Research Using Online Customer Reviews

Posted: 18 Dec 2010  

Thomas Lee

The Wharton School, University of Pennsylvania; Haas School of Business, University of California at Berkeley

Eric Bradlow

University of Pennsylvania - Marketing Department

Multiple version iconThere are 2 versions of this paper

Date Written: December 15, 2010

Abstract

Market structure analysis is a basic pillar of marketing research. Classic challenges in marketing such as pricing, campaign management, brand positioning, and new product development are rooted in an analysis of product substitutes and complements inferred from market structure.

In this paper, we present a method to support the analysis and visualization of market structure by automatically eliciting product attributes, and brand’s relative positions, from online customer reviews. First, we discover attributes and attribute dimensions using the "Voice of the Consumer," as reflected in customer reviews, rather than that of manufacturers. Second, the approach runs automatically. Third, we support rather than supplant managerial judgment by reinforcing or augmenting attributes and dimensions found through traditional surveys and focus groups.

We test the approach on six years of customer reviews for digital cameras during a period of rapid market evolution. We analyze and visualize results in several different ways including comparisons to expert buying guides, a laboratory survey, and Correspondence Analysis of automatically discovered product attributes. Managerial insights drawn from the analysis are evaluated with respect to proprietary market research reports from the same time period analyzing digital imaging products.

Keywords: market structure analysis, online customer reviews, text mining

Suggested Citation

Lee, Thomas and Bradlow, Eric, Automated Marketing Research Using Online Customer Reviews (December 15, 2010). Available at SSRN: https://ssrn.com/abstract=1726055 or http://dx.doi.org/10.2139/ssrn.1726055

Thomas Lee (Contact Author)

The Wharton School, University of Pennsylvania ( email )

500 JMHH
3730 Walnut Street
Philadelphia, PA 19104
United States

Haas School of Business, University of California at Berkeley ( email )

F402 Haas School of Business, #1930
Berkeley, CA 94720-1930
United States

Eric Bradlow

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States
215-898-8255 (Phone)

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