The impact of online word-of-mouse : sales of new products at amazon.com

Geng CUI, Xiaoning GUO

Research output: Book Chapters | Papers in Conference ProceedingsConference paper (refereed)

1 Scopus Citations

Abstract

Online word-of-mouth (WOM) has become a major information source for consumers planning to purchase new products. This study examines the effect of online consumer reviews on the sales of new products. Using the data collected from Amazon.com over a period of nine months, we find that while the effect of valence of online reviews is greater than that of volume, negative consumer reviews affect new product sales more than positive reviews, but not in a negative way. Volume and valence of online reviews have greater impact on experience products than on search products. Moreover, the volume of consumer reviews has a greater effect on new product sales in the later stage of product life cycle (PLC). Thus, online WOM gains momentum over time and significantly affects the sales of new products beyond the initial period. Marketers need to pay greater attention to online WOM and promote consumer reviews when launching new products.

Original languageEnglish
Title of host publicationICE-B 2009 : International Conference on e-Business, proceedings
PublisherSciTePress
Pages143-150
Number of pages8
ISBN (Print)9789896740061
Publication statusPublished - 1 Dec 2009
EventICE-B 2009 - International Conference on e-Business - Milan, Italy
Duration: 7 Jul 200910 Jul 2009

Publication series

NameICE-B 2009 - International Conference on e-Business, Proceedings

Conference

ConferenceICE-B 2009 - International Conference on e-Business
CountryItaly
CityMilan
Period7/07/0910/07/09

Keywords

  • New products
  • Panel data analysis
  • Product reviews
  • Word-of-mouth
  • e-Marketing

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  • Cite this

    CUI, G., & GUO, X. (2009). The impact of online word-of-mouse : sales of new products at amazon.com. In ICE-B 2009 : International Conference on e-Business, proceedings (pp. 143-150). (ICE-B 2009 - International Conference on e-Business, Proceedings). SciTePress.