Examining the Relationship between Online Review Sentiment and Sales

Workshops of Information Networks, 2013

5 Pages Posted: 25 Jul 2014

See all articles by Jie Ren

Jie Ren

Fordham University

Jeffrey V. Nickerson

Stevens Institute of Technology - School of Business

Date Written: September 14, 2013

Abstract

This paper studied 1942 products from Amazon.com to examine how online review sentiment affects sales. The findings show that controlling for the volume of online reviews, the online review sentiment does affect sales. Additionally, product price serves as a moderator for this impact; however, product type doesn’t. That is, regardless of product type, the high proportion of negative reviews would significantly undermine the sales of priced products, but not the sales of free products. Also, this negative effect of negative online review sentiment is mitigated or even negated for hedonic and free products when they have many reviews. All the findings imply that people are sometimes skeptical of negative reviews and this skeptical attitude is contingent on free versus priced products.

Suggested Citation

Ren, Jie and Nickerson, Jeffrey V., Examining the Relationship between Online Review Sentiment and Sales (September 14, 2013). Workshops of Information Networks, 2013, Available at SSRN: https://ssrn.com/abstract=2470743

Jie Ren (Contact Author)

Fordham University ( email )

Rose Hill Campus Bronx
New York, NY 10458
United States

Jeffrey V. Nickerson

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
72
Abstract Views
628
rank
362,812
PlumX Metrics