IDEAS home Printed from https://ideas.repec.org/a/spr/elmark/v30y2020i4d10.1007_s12525-020-00425-4.html
   My bibliography  Save this article

May we buy your love? psychological effects of incentives on writing likelihood and valence of online product reviews

Author

Listed:
  • Ina Garnefeld

    (University of Wuppertal)

  • Sabrina Helm

    (University of Arizona, Norton School of Family & Consumer Sciences)

  • Ann-Kathrin Grötschel

    (Vaillant GmbH)

Abstract

Acknowledging the impact on their sales, companies strive to increase the number of positive online reviews of their products. A recently popular practice for stimulating online reviews is offering monetary rewards to customers in return for writing an online review. However, it is unclear whether such practices succeed in fulfilling two main objectives, namely, increasing the number and the valence of online reviews. With one pilot and two experimental studies, this research shows that offering incentives indeed increases the likelihood of review writing. However, the effect on review valence is mixed, due to contradictory psychological effects: Incentive recipients intend to reciprocate by writing favorable reviews but also perceive a need to resist marketers’ influence, which negatively affects their review valence. Finally, recipients who are less satisfied with the product are particularly prone to psychological costs and decrease the positivity of their online reviews. Consequently, incentives should be applied carefully.

Suggested Citation

  • Ina Garnefeld & Sabrina Helm & Ann-Kathrin Grötschel, 2020. "May we buy your love? psychological effects of incentives on writing likelihood and valence of online product reviews," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 805-820, December.
    • Handle: RePEc:spr:elmark:v:30:y:2020:i:4:d:10.1007_s12525-020-00425-4
    DOI: 10.1007/s12525-020-00425-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12525-020-00425-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12525-020-00425-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lu, Shuya & Wu, Jianan & Tseng, Shih-Lun (Allen), 2018. "How Online Reviews Become Helpful: A Dynamic Perspective," Journal of Interactive Marketing, Elsevier, vol. 44(C), pages 17-28.
    2. King, Robert Allen & Racherla, Pradeep & Bush, Victoria D., 2014. "What We Know and Don't Know About Online Word-of-Mouth: A Review and Synthesis of the Literature," Journal of Interactive Marketing, Elsevier, vol. 28(3), pages 167-183.
    3. Dhar, Vasant & Chang, Elaine A., 2009. "Does Chatter Matter? The Impact of User-Generated Content on Music Sales," Journal of Interactive Marketing, Elsevier, vol. 23(4), pages 300-307.
    4. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2008. "Representative Trust And Reciprocity: Prevalence And Determinants," Economic Inquiry, Western Economic Association International, vol. 46(1), pages 84-90, January.
    5. Kumar, V. & Pozza, Ilaria Dalla & Ganesh, Jaishankar, 2013. "Revisiting the Satisfaction–Loyalty Relationship: Empirical Generalizations and Directions for Future Research," Journal of Retailing, Elsevier, vol. 89(3), pages 246-262.
    6. Uri Gneezy & Stephan Meier & Pedro Rey-Biel, 2011. "When and Why Incentives (Don't) Work to Modify Behavior," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 191-210, Fall.
    7. Martin Mende & Scott Thompson & Christian Coenen, 2015. "It’s all relative: how customer-perceived competitive advantage influences referral intentions," Marketing Letters, Springer, vol. 26(4), pages 661-678, December.
    8. Jonah Berger & Alan T. Sorensen & Scott J. Rasmussen, 2010. "Positive Effects of Negative Publicity: When Negative Reviews Increase Sales," Marketing Science, INFORMS, vol. 29(5), pages 815-827, 09-10.
    9. Kolbe, Richard H & Burnett, Melissa S, 1991. "Content-Analysis Research: An Examination of Applications with Directives for Improving Research Reliability and Objectivity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 243-250, September.
    10. Jonah Berger & Raghuram Iyengar, 2013. "Communication Channels and Word of Mouth: How the Medium Shapes the Message," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(3), pages 567-579.
    11. Caliendo, Marco & Fossen, Frank & Kritikos, Alexander, 2012. "Trust, positive reciprocity, and negative reciprocity: Do these traits impact entrepreneurial dynamics?," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 394-409.
    12. Wendy W. Moe & David A. Schweidel, 2012. "Online Product Opinions: Incidence, Evaluation, and Evolution," Marketing Science, INFORMS, vol. 31(3), pages 372-386, May.
    13. Kostyra, Daniel S. & Reiner, Jochen & Natter, Martin & Klapper, Daniel, 2016. "Decomposing the effects of online customer reviews on brand, price, and product attributes," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 11-26.
    14. Cho, Hyun-Chul & Abe, Shuzo, 2013. "Is two-tailed testing for directional research hypotheses tests legitimate?," Journal of Business Research, Elsevier, vol. 66(9), pages 1261-1266.
    15. Warut Khern-am-nuai & Karthik Kannan & Hossein Ghasemkhani, 2018. "Extrinsic versus Intrinsic Rewards for Contributing Reviews in an Online Platform," Information Systems Research, INFORMS, vol. 29(4), pages 871-892, December.
    16. Jörn Block & Andreas Kuckertz, 2018. "Seven principles of effective replication studies: strengthening the evidence base of management research," Management Review Quarterly, Springer, vol. 68(4), pages 355-359, November.
    17. Bin Gu & Jaehong Park & Prabhudev Konana, 2012. "Research Note ---The Impact of External Word-of-Mouth Sources on Retailer Sales of High-Involvement Products," Information Systems Research, INFORMS, vol. 23(1), pages 182-196, March.
    18. Eelen, Jiska & Özturan, Peren & Verlegh, Peeter W.J., 2017. "The differential impact of brand loyalty on traditional and online word of mouth: The moderating roles of self-brand connection and the desire to help the brand," International Journal of Research in Marketing, Elsevier, vol. 34(4), pages 872-891.
    19. Thakur, Rakhi, 2018. "Customer engagement and online reviews," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 48-59.
    20. Eyal Biyalogorsky & Eitan Gerstner & Barak Libai, 2001. "Customer Referral Management: Optimal Reward Programs," Marketing Science, INFORMS, vol. 20(1), pages 82-95, August.
    21. Yang, Yang & Gu, Yangjie & Galak, Jeff, 2016. "When It Could Have Been Worse, It Gets Better: How Favorable Uncertainty Resolution Slows Hedonic Adaptation," HEC Research Papers Series 1171, HEC Paris.
    22. Michael Luca, 2011. "Reviews, Reputation, and Revenue: The Case of Yelp.com," Harvard Business School Working Papers 12-016, Harvard Business School, revised Mar 2016.
    23. Stephen X. He & Samuel D. Bond, 2015. "Why Is the Crowd Divided? Attribution for Dispersion in Online Word of Mouth," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(6), pages 1509-1527.
    24. Pan, Yue & Zhang, Jason Q., 2011. "Born Unequal: A Study of the Helpfulness of User-Generated Product Reviews," Journal of Retailing, Elsevier, vol. 87(4), pages 598-612.
    25. Juan Feng & Xin Li & Xiaoquan (Michael) Zhang, 2019. "Online Product Reviews-Triggered Dynamic Pricing: Theory and Evidence," Information Systems Research, INFORMS, vol. 30(4), pages 1107-1123, December.
    26. Michael J. Barone & T. J. Bae & Shanshan Qian & Jason d’Mello, 2017. "Power and the appeal of the deal: how consumers value the control provided by Pay What You Want (PWYW) pricing," Marketing Letters, Springer, vol. 28(3), pages 437-447, September.
    27. Ann E. Schlosser, 2005. "Posting versus Lurking: Communicating in a Multiple Audience Context," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(2), pages 260-265, September.
    28. Moldovan, Sarit & Goldenberg, Jacob & Chattopadhyay, Amitava, 2011. "The different roles of product originality and usefulness in generating word-of-mouth," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 109-119.
    29. Nachiketa Sahoo & Chrysanthos Dellarocas & Shuba Srinivasan, 2018. "The Impact of Online Product Reviews on Product Returns," Information Systems Research, INFORMS, vol. 29(3), pages 723-738, September.
    30. Purnawirawan, Nathalia & De Pelsmacker, Patrick & Dens, Nathalie, 2012. "Balance and Sequence in Online Reviews: How Perceived Usefulness Affects Attitudes and Intentions," Journal of Interactive Marketing, Elsevier, vol. 26(4), pages 244-255.
    31. Jin, Liyin & Huang, Yunhui, 2014. "When giving money does not work: The differential effects of monetary versus in-kind rewards in referral reward programs," International Journal of Research in Marketing, Elsevier, vol. 31(1), pages 107-116.
    32. Park, Sangwon & Nicolau, Juan L., 2015. "Asymmetric effects of online consumer reviews," Annals of Tourism Research, Elsevier, vol. 50(C), pages 67-83.
    33. Michael Luca & Georgios Zervas, 2016. "Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud," Management Science, INFORMS, vol. 62(12), pages 3412-3427, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andreas J. Steur & Fabian Fritzsche & Mischa Seiter, 2022. "It’s all about the text: An experimental investigation of inconsistent reviews on restaurant booking platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1187-1220, September.
    2. Ina Garnefeld & Tabea Krah & Eva Böhm & Dwayne D. Gremler, 2021. "Online reviews generated through product testing: can more favorable reviews be enticed with free products?," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 703-722, July.
    3. Román, Sergio & Riquelme, Isabel P. & Iacobucci, Dawn, 2023. "Fake or credible? Antecedents and consequences of perceived credibility in exaggerated online reviews," Journal of Business Research, Elsevier, vol. 156(C).
    4. Chen, Ruolan & Yuan, Ruizhi & Huang, Bo & Liu, Martin J., 2023. "Feeling warm or skeptical? An investigation into the effects of incentivized eWOM programs on customers’ eWOM sharing intentions," Journal of Business Research, Elsevier, vol. 167(C).
    5. Xueyu Liu & Shue Mei & Weijun Zhong, 2023. "Video‐sharing platform's optimal monetary incentive decisions considering motivation crowding‐out effect," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 371-387, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zheng, Lili, 2021. "The classification of online consumer reviews: A systematic literature review and integrative framework," Journal of Business Research, Elsevier, vol. 135(C), pages 226-251.
    2. Dominik Gutt & Jürgen Neumann & Steffen Zimmermann & Dennis Kundisch & Jianqing Chen, 2018. "Design of Review Systems - A Strategic Instrument to shape Online Review Behavior and Economic Outcomes," Working Papers Dissertations 42, Paderborn University, Faculty of Business Administration and Economics.
    3. Ana Babić Rosario & Kristine Valck & Francesca Sotgiu, 2020. "Conceptualizing the electronic word-of-mouth process: What we know and need to know about eWOM creation, exposure, and evaluation," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 422-448, May.
    4. Young Joon Park & Jaewoo Joo & Charin Polpanumas & Yeujun Yoon, 2021. "“Worse Than What I Read?” The External Effect of Review Ratings on the Online Review Generation Process: An Empirical Analysis of Multiple Product Categories Using Amazon.com Review Data," Sustainability, MDPI, vol. 13(19), pages 1-22, September.
    5. Zhu, Yongmin & Liu, Miaomiao & Zeng, Xiaohua & Huang, Pei, 2020. "The effects of prior reviews on perceived review helpfulness: A configuration perspective," Journal of Business Research, Elsevier, vol. 110(C), pages 484-494.
    6. Raoofpanah, Iman & Zamudio, César & Groening, Christopher, 2023. "Review reader segmentation based on the heterogeneous impacts of review and reviewer attributes on review helpfulness: A study involving ZIP code data," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    7. Agnieszka Zablocki & Bodo Schlegelmilch & Michael J. Houston, 2019. "How valence, volume and variance of online reviews influence brand attitudes," AMS Review, Springer;Academy of Marketing Science, vol. 9(1), pages 61-77, June.
    8. Ishita Chakraborty & Minkyung Kim & K. Sudhir, 2019. "Attribute Sentiment Scoring With Online Text Reviews : Accounting for Language Structure and Attribute Self-Selection," Cowles Foundation Discussion Papers 2176, Cowles Foundation for Research in Economics, Yale University.
    9. Scott Motyka & Dhruv Grewal & Elizabeth Aguirre & Dominik Mahr & Ko Ruyter & Martin Wetzels, 2018. "The emotional review–reward effect: how do reviews increase impulsivity?," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1032-1051, November.
    10. Warut Khern-am-nuai & Karthik Kannan & Hossein Ghasemkhani, 2018. "Extrinsic versus Intrinsic Rewards for Contributing Reviews in an Online Platform," Information Systems Research, INFORMS, vol. 29(4), pages 871-892, December.
    11. Tao Lu & May Yuan & Chong (Alex) Wang & Xiaoquan (Michael) Zhang, 2022. "Histogram Distortion Bias in Consumer Choices," Management Science, INFORMS, vol. 68(12), pages 8963-8978, December.
    12. Ishita Chakraborty & Minkyung Kim & K. Sudhir, 2019. "Attribute Sentiment Scoring With Online Text Reviews : Accounting for Language Structure and Attribute Self-Selection," Cowles Foundation Discussion Papers 2176R2, Cowles Foundation for Research in Economics, Yale University, revised Jun 2021.
    13. Konstantin Bauman & Alexander Tuzhilin, 2022. "Know Thy Context: Parsing Contextual Information from User Reviews for Recommendation Purposes," Information Systems Research, INFORMS, vol. 33(1), pages 179-202, March.
    14. Ishita Chakraborty & Minkyung Kim & K. Sudhir, 2019. "Attribute Sentiment Scoring With Online Text Reviews : Accounting for Language Structure and Attribute Self-Selection," Cowles Foundation Discussion Papers 2176R, Cowles Foundation for Research in Economics, Yale University, revised Sep 2020.
    15. Marchand, André & Hennig-Thurau, Thorsten & Wiertz, Caroline, 2017. "Not all digital word of mouth is created equal: Understanding the respective impact of consumer reviews and microblogs on new product success," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 336-354.
    16. Guiyang Xiong & Sundar Bharadwaj, 2014. "Prerelease Buzz Evolution Patterns and New Product Performance," Marketing Science, INFORMS, vol. 33(3), pages 401-421, May.
    17. Yipu Deng & Jinyang Zheng & Warut Khern-am-nuai & Karthik Kannan, 2022. "More than the Quantity: The Value of Editorial Reviews for a User-Generated Content Platform," Management Science, INFORMS, vol. 68(9), pages 6865-6888, September.
    18. M. Narciso, 2022. "The Unreliability of Online Review Mechanisms," Journal of Consumer Policy, Springer, vol. 45(3), pages 349-368, September.
    19. He, Yi & You, Ya & Chen, Qimei, 2020. "Our conditional love for the underdog: The effect of brand positioning and the lay theory of achievement on WOM," Journal of Business Research, Elsevier, vol. 118(C), pages 210-222.
    20. Bin Guo & Shasha Zhou, 2017. "What makes population perception of review helpfulness: an information processing perspective," Electronic Commerce Research, Springer, vol. 17(4), pages 585-608, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elmark:v:30:y:2020:i:4:d:10.1007_s12525-020-00425-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.