TY - JOUR
T1 - The effect of online consumer reviews on new product sales
AU - CUI, Geng
AU - LUI, Hon Kwong
AU - GUO, Xiaoning
PY - 2012/1/1
Y1 - 2012/1/1
N2 - This study examines the effect of online reviews on new product sales for consumer electronics and video games. Analyses of panel data of 332 new products from Amazon.com over nine months reveal that the valence of reviews and the volume of page views have a stronger effect on search products, whereas the volume of reviews is more important for experience products. The results also show that the volume of reviews has a significant effect on new product sales in the early period and such effect decreases over time. Moreover, the percentage of negative reviews has a greater effect than that of positive reviews, confirming the negativity bias. Thus, marketers need to consider the distinctive influences of various aspects of online reviews when launching new products and devising e-marketing strategies.
AB - This study examines the effect of online reviews on new product sales for consumer electronics and video games. Analyses of panel data of 332 new products from Amazon.com over nine months reveal that the valence of reviews and the volume of page views have a stronger effect on search products, whereas the volume of reviews is more important for experience products. The results also show that the volume of reviews has a significant effect on new product sales in the early period and such effect decreases over time. Moreover, the percentage of negative reviews has a greater effect than that of positive reviews, confirming the negativity bias. Thus, marketers need to consider the distinctive influences of various aspects of online reviews when launching new products and devising e-marketing strategies.
KW - New product sales
KW - online product reviews
KW - panel data analyses
KW - search vs. experience products
KW - word of mouth
UR - http://commons.ln.edu.hk/sw_master/2418
UR - http://www.scopus.com/inward/record.url?scp=84866726897&partnerID=8YFLogxK
U2 - 10.2753/JEC1086-4415170102
DO - 10.2753/JEC1086-4415170102
M3 - Journal Article (refereed)
SN - 1086-4415
VL - 17
SP - 39
EP - 57
JO - International Journal of Electronic Commerce
JF - International Journal of Electronic Commerce
IS - 1
ER -