Title

Online reviews as a driver of new product sales

Document Type

Book chapter

Source Publication

Proceedings : 2010 International Conference on Management of e-Commerce and e-Government : ICMeCG 2010, 23-24 October 2010, Chengu, Sichuan, China

Publication Date

1-1-2010

First Page

20

Last Page

25

Publisher

IEEE Computer Society

Keywords

Word-of-mouth, Online product reviews, New product sales, Search vs. experience products, Panel data analyses

Abstract

This study reports several surprising findings and new insights about the effect of online product reviews on the sales of new products. Analyses of panel data of 332 new products from Amazon.com indicate that negative reviews affect new product sales more than positive reviews, but also in a positive way. Different from the proposition of the diffusion model, e-WOM has a strong effect on new product sales early on and such effect decreases over time. Moreover, the volume of page views by followers is far more influential than that of reviews by opinion leaders, especially in the early period of product lifecycle, suggesting a significant cascade effect. The effects of page views and valence of online reviews are stronger than that of volume, more so for search products than for experience products. Thus, marketers need to consider the distinctive influences of various aspects of online reviews when launching new products and devising e-marketing strategies.

DOI

10.1109/ICMeCG.2010.13

Publisher Statement

Copyright © 2010 by The Institute of Electrical and Electronics Engineers, Inc.

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

Additional Information

ISBN of the source publication: 9781424485079

Full-text Version

Publisher’s Version

Recommended Citation

Cui, G., Lui, H.-k., & Guo, X. (2010). Online reviews as a driver of new product sales. In Q. Li, C. Wan, & B. Xu (Eds.), Proceedings: 2010 International Conference on Management of e-Commerce and e-Government: ICMeCG 2010, 23-24 October 2010, Chengu, Sichuan, China (pp. 20-25). Los Alamitos, California: IEEE Computer Society. doi: 10.1109/ICMeCG.2010.13