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
Language
English
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