People Rely Less on Consumer Reviews for Experiential than Material Purchases

93 Pages Posted: 10 Sep 2014 Last revised: 7 Aug 2018

See all articles by Hengchen Dai

Hengchen Dai

University of California, Los Angeles (UCLA) - Anderson School of Management

Cindy Chan

University of Toronto - Marketing; University of Pennsylvania - The Wharton School; University of Toronto at Scarborough

Cassie Mogilner

University of California, Los Angeles (UCLA) - Anderson School of Management

Date Written: August 3, 2018

Abstract

An increasingly prevalent form of social influence occurs online where consumers read reviews written by other consumers. Do people rely on consumer reviews differently when making experiential purchases (events to live through) than when making material purchases (objects to keep)? An analysis of more than 6 million reviews on Amazon.com and four laboratory experiments reveal that people are less likely to rely on consumer reviews for experiential purchases than for material purchases. This effect is driven by beliefs that reviews are less reflective of the purchase’s objective quality for experiences than for material goods. These findings not only inform how different types of purchases are influenced by word-of-mouth, but they illuminate the psychological processes underlying shoppers’ reliance on consumer reviews. Furthermore, as one of the first investigations into how people choose among various experiential and material purchase options, these findings suggest that people might be more open to being told what to have than what to do.

Keywords: experiential purchases, material purchases, consumer reviews, objective quality

Suggested Citation

Dai, Hengchen and Chan, Cindy and Mogilner, Cassie, People Rely Less on Consumer Reviews for Experiential than Material Purchases (August 3, 2018). Available at SSRN: https://ssrn.com/abstract=2493536 or http://dx.doi.org/10.2139/ssrn.2493536

Hengchen Dai (Contact Author)

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

Cindy Chan

University of Toronto - Marketing ( email )

United States

University of Pennsylvania - The Wharton School ( email )

3733 Spruce Street
Philadelphia, PA 19104-6374
United States

University of Toronto at Scarborough ( email )

1265 Military Trail
Scarborough, Ontario M1C 1A4
Canada

Cassie Mogilner

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

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