Title

The effect of online consumer reviews on new product sales

Document Type

Journal article

Source Publication

International Journal of Electronic Commerce

Publication Date

Fall 1-1-2012

Volume

17

Issue

1

First Page

39

Last Page

57

Keywords

New product sales, online product reviews, panel data analyses, search vs. experience products, word of mouth

Abstract

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.

DOI

10.2753/JEC1086-4415170102

Print ISSN

10864415

E-ISSN

15579301

Publisher Statement

Copyright © 2012 M.E. Sharpe, Inc.

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Cui, G., Lui, H.-K., & Guo, X. (2012). The effect of online consumer reviews on new product sales. International Journal of Electronic Commerce, 17(1), 39-58. doi: 10.2753/JEC1086-4415170102