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What drives online course sales? Signaling effects of user-generated information in the paid knowledge market

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  • Zhang, Mingli
  • Zhang, Yan
  • Zhao, Lu
  • Li, Xiaoyong

Abstract

The emergence of a paid knowledge market provides knowledge contributors a way to get economic repay from their sharing, but little is known about the determinants of sales of those paid knowledge content. To study this, we identify three user-generated signals: the rating of content product, followers of content producer, and upvotes content producer gains, which may influence consumers' content quality perceptions and purchase decisions. Drawing on a panel data set of 6380 online live courses, we propose a new perspective of signaling effect by distinguishing the influence of the flow and stock of signals. Hypotheses are tested using fixed-effect regression and panel vector autoregression methodology. The result suggests a positive impact of ratings and followers on sales, a negative impact of upvotes on sales, and reveals the dynamic interactivity between the flow of signals and sales. These findings offer insights into signaling theory and knowledge product transactions.

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  • Zhang, Mingli & Zhang, Yan & Zhao, Lu & Li, Xiaoyong, 2020. "What drives online course sales? Signaling effects of user-generated information in the paid knowledge market," Journal of Business Research, Elsevier, vol. 118(C), pages 389-397.
    • Handle: RePEc:eee:jbrese:v:118:y:2020:i:c:p:389-397
    DOI: 10.1016/j.jbusres.2020.07.008
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    3. Qingfeng Zeng & Wei Zhuang & Qian Guo & Weiguo Fan, 2022. "What factors influence grassroots knowledge supplier performance in online knowledge platforms? Evidence from a paid Q&A service," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 2507-2523, December.

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